My comment is MSV's balance sheet debt level, even if currentlymanageable. Here's a perspective on capital allocation:
· Prioritize Debt Reduction: While a buyback can improve financial ratios, reducing debt should be a priority. This strengthens MSV's financial health and frees up future cash flow.
· Reinstated Dividends and Re-rating: Regular dividends can incentivize long-term investors and potentially lead to a market re-rating ofthe stock.
Sustainable Growth Strategy:
For equipment rental companies, some debt is necessary. Here's a potential balanced approach:
· Strategic Debt Reduction: Allocate a set percentage of free cash flow towards debt reduction until a comfortable level is reached.
· Cash Buffer Creation: Allocate another portion to build a cash buffer for economic downturns and unexpected expenses.
· Diversification and Investment: Finally, consider allocating remaining free cash flow to diversify the business through acquisitions or internal expansion, aiming for strategic growth.
· Opportunistic Buybacks: Maintain a small, dedicated fund for opportunistic buybacks if the share price falls significantly below book value. This protects against excessive price discounts.
Management's Role:
Ultimately, the ideal allocation percentages (X) should be determined by management, considering market conditions, risk tolerance, and future growth plans.
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Last
13.8¢ |
Change
-0.003(1.79%) |
Mkt cap ! $58.52M |
Open | High | Low | Value | Volume |
13.5¢ | 14.0¢ | 13.5¢ | $141.6K | 1.038M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 65126 | 13.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
14.0¢ | 204849 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 65126 | 0.135 |
3 | 481545 | 0.130 |
3 | 213000 | 0.125 |
4 | 326341 | 0.120 |
1 | 100000 | 0.115 |
Price($) | Vol. | No. |
---|---|---|
0.140 | 204849 | 3 |
0.145 | 259999 | 2 |
0.150 | 598558 | 9 |
0.155 | 273018 | 4 |
0.160 | 31848 | 3 |
Last trade - 15.57pm 10/05/2024 (20 minute delay) ? |
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Last
13.8¢ |
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Change
-0.003 ( 1.79 %) |
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Open | High | Low | Volume | ||
13.8¢ | 13.8¢ | 13.8¢ | 90720 | ||
Last updated 12.51pm 10/05/2024 ? |
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